Bruker Corporation Reports Third Quarter 2009 Financial Results

Bruker Corporation Reports Third

Quarter 2009 Financial Results

BILLERICA, Mass. October 29, 2009 (BUSINESS WIRE) Bruker

Corporation (NASDAQ: BRKR) today reported financial results for the third

quarter ended September 30, 2009.

Third Quarter 2009 Highlights

Revenue $265.1 million

GAAP Net Income $16.4

GAAP EPS $0.10 per diluted

Free cash flow $14.2 million

In the third quarter of 2009, revenue was $265.1 million, an increase

of 9.5% compared to revenue of $242.1 million in the third quarter of

2008. Excluding the effect of foreign

currency translation, third quarter 2009 revenue increased 11.4%

year-over-year. GAAP net income for the

third quarter of 2009 was $16.4 million, or $0.10 per diluted share, compared

to GAAP net income of $17.8 million, or $0.11 per diluted share, in the third

quarter of 2008. Included in GAAP EPS in

the third quarter of 2008 were (i) one-time tax benefits of $0.07 per

diluted share and (ii) non-cash stock-based compensation expense of ($0.01)

per diluted share. Included in GAAP EPS

in the third quarter of 2009 was non-cash stock-based compensation expense of

($0.01) per diluted share.

For the nine months ended September 30, 2009, revenue was $748.1

million, a decrease of 5.5% compared to revenue of $791.9 million in the first

three quarters of 2008. Excluding the

effect of foreign currency translation, revenue for the nine months ended September 30,

2009 increased by 0.5% year-over-year.

GAAP net income for the nine months ended September 30, 2009 was

$37.7 million, or $0.23 per diluted share, compared to GAAP net income of $38.7

million, or $0.23 per diluted share, for the nine months ended September 30,

2008. Included in GAAP EPS for the nine

months ended September 30, 2008 were (i) one-time tax benefits of

$0.07 per diluted share, (ii) Bruker BioSpin acquisition related expenses

of ($0.04) per diluted share, and (iii) non-cash stock-based compensation

expense of ($0.02) per diluted share.

Included in GAAP EPS for the nine months ended September 30, 2009

was non-cash stock-based compensation expense of ($0.02) per diluted share.

Free cash flow was $14.2 million in the third quarter of 2009, and

$58.4 million for the nine months ended September 30, 2009, compared to a

use of cash of ($11.9) million for the third quarter of 2008, and a use of cash

of ($20.9) million for the nine months ended September 30, 2008. During the third quarter of 2009, Bruker

repaid $19.3 million of debt, ending the quarter with cash and cash equivalents

of $150.5 million, and net debt of $0.8 million, compared to net debt of $127.6

million at the end of the third quarter of 2008.

Frank Laukien, Bruker s President and CEO, commented: We are pleased

with our double-digit currency-adjusted third quarter 2009 year-over-year

revenue growth, with our solid sequential improvements in revenue, operating

margins and net income during the first three quarters of 2009, and with our

strong free cash flow year-to-date. Our

third quarter 2009 operating income increased more than 70% year-over-year, and

our operating margin improved sequentially by 180 basis points, when compared

to the second quarter 2009.

Dr. Laukien continued: During the third

quarter we have seen positive sequential trends in bookings throughout the

company, even in the divisions with a greater industrial markets exposure. We have also begun to see robust bookings

from our academic and government customers who are benefiting from various global

government stimulus programs. While we

expect a strong fourth quarter of 2009, we believe that most of the anticipated

positive revenue and margin effects from global stimulus orders will be

reflected in Bruker s financial results in 2010 and 2011.

After Bruker s acquisition of the ACCEL Research Instruments business

on April 1, 2009, starting with the second quarter of 2009, Bruker has

established two new reportable segments:

1) The Bruker Scientific Instruments (BSI) segment which consists of

the four divisions Bruker AXS, Bruker BioSpin, Bruker Daltonics and Bruker

2) The Bruker Energy & Supercon Technologies (BEST) segment

which combines the acquired ACCEL RI business, and the superconductor and

supercon devices business, which was previously called Bruker Advanced Supercon, Inc.

Revenue in the BSI segment for the nine months ended September 30,

2009 was $716.5 million, compared to BSI revenue of $767.3 million for the nine

months ended September 30, 2008.

Excluding the effects of foreign currency translation, for the first

nine months of 2009, BSI revenue decreased by 1.0% year-over-year. BSI net income for the nine months ended September 30,

2009 was $41.7 million, compared to $45.3 million for the nine months ended September 30,

2008. BSI earnings per diluted share for

the nine months ended September 30, 2009 were $0.25, compared to $0.27 for

the nine months ended September 30, 2008.

Revenue in the BEST segment for the nine months ended September 30,

2009 was $36.0 million, compared to BEST revenue of $32.5 million for the nine

months ended September 30, 2008.

Excluding the effects of foreign currency translation, for the first

nine months of 2009, BEST revenue increased by 23.4%

year-over-year. BEST net loss for the

nine months ended September 30, 2009 was ($5.0) million, compared to a net

loss of ($6.8) million for the nine months ended September 30, 2008. BEST loss per diluted share for the nine

months ended September 30, 2009 was ($0.03), compared to ($0.04) for the

nine months ended September 30, 2008.

Following at the end of this press release

are reconciliations of certain non-GAAP measures presented in this release.

USE OF NON-GAAP FINANCIAL MEASURES

In addition to the financial measures prepared in accordance with

generally accepted accounting principles (GAAP), we use the measures of

non-GAAP revenue, non-GAAP net income, non-GAAP EPS by reportable segment, and

non-GAAP free cash flow for Bruker Corporation.

We believe that such non-GAAP measures help investors to gain a better

understanding of our core operating results and future prospects, consistent

with how management measures and forecasts the Company s performance,

especially when comparing such results to previous periods or forecasts. However, the non-GAAP financial measures

included in this press release are not meant to be a better presentation or a